Newcastle Intermediaries has removed the minimum income criteria on its buy-to-let mortgage products in an effort to broaden its appeal with landlords who have lower or non-traditional incomes.
Borrowers no longer need to meet the £25k pa (£30k joint) minimum income requirement on Newcastle Intermediaries’ buy-to-let mortgage products, with affordability instead being assessed on the Interest Coverage Ratio (ICR).
The lender says its removal of the buy-to-let minimum income requirement and assessment of affordability via ICR tests will broaden the options available to landlords on the buy-to-let market. Borrowers must be in receipt of an employed, self-employed or pension income.
Earlier in 2022 Newcastle Intermediaries integrated with SmartrFit, Legal & General’s mortgage criteria support service. This has enabled Newcastle Intermediaries to provide more accurate data to brokers, updating them more efficiently with its latest criteria and products on offer, including its buy-to-let product range.
Danny Belton, head of lender relationships at Legal & General, said: “It’s encouraging to see Newcastle Intermediaries take a common-sense approach to lending and ease the barrier to entry for buy-to-let borrowers through the removal of its minimum income requirements. This will prove a welcome change for customers who will now benefit from a simplified mortgage application process.”
Stuart Miller (pictured), chief customer officer at Newcastle Building Society, added: “With the primary driver for affordability being rent generated on the property itself, additional affordability assessments such as having the minimum income criteria in place can prove unnecessary.
“Removing this requirement not only underlines our commitment to the buy-to-let market by ensuring we continue to deliver a competitive and flexible offering, but also helps to broaden the accessibility of Newcastle Intermediaries’ proposition to brokers and their clients.”